Students of failed college face cancelled qualifications

About 800 former students of the cash-strapped Community College East Gippsland, in south-east Victoria, will have their qualifications cancelled.

Since the college was closed in October, 110 students have taken up their studies elsewhere.

However, the administrator's report now reveals, that five qualifications taught at the college are no longer valid.

This means more than 800 former students could be working in the field with invalid qualifications.

Almost half of those students hold worthless qualifications in first aid/perform CPR.

Another 400 students hold worthless qualifications in training in assessment, asset maintenance, horticulture and responsible service of alcohol.

The report says there is no money to refund students for their valid or invalid qualifications.

It has revealed the college was haemorrhaging money before it closed its doors.

From January until October this year, the college lost more than $600,000.

In 2011, the college lost more than $200,000.

The report's author, Andrew Hewitt, blames the losses on increased staff costs, dwindling cash reserves and poor information management, which resulted in the college over-claiming $390,000 worth of Federal Government funding.

Mr Hewitt says the college should be placed into liquidation and its members investigated for insolvent trading.

So far, the report says none of the college's incorporated association members have fully complied with the investigation.

The college's creditors will meet in Bairnsdale this Friday to decide if the college will be liquidated.